Practices of Selected Online Merchandising Businesses in Gasan, Marinduque in

Relation to Inventory Ordering Cost, and Carrying Cost: Basis to Improve and
Develop Effective Inventory Cost Techniques
1. How do the selected Online Merchandising Businesses practice their inventory
management in terms of:

1.1. Ordering Cost

1.2. Carrying Cost

Table 1.1 Inventory Management Practices in Terms of Ordering Cost

RESPONDENTS INVENTORY MANAGEMENT PRACTICES IN TERMS OF ORDERING COST
1 The response of the online merchandising business owner no. 1 to her inventory
management practices in relation to ordering cost was that the ordering of products
was done once a month, usually through shopping in the markets of Manila like
Baclaran. Ordering of products depends when the prices or products are lower and
when there are sales discounts. To lessen the cost of ordering, she personally buys
the products.

2 The response of the online merchandising business owner no. 2 to her inventory
management practices in relation to ordering cost was that the ordering of products
was done once a week, through online. She usually orders products based on its
price. When ordering online, she uses discount promos like free shipping vouchers
to lessen the cost of ordering.

3 The response of the online merchandising business owner no. 3 to her inventory
management practices in relation to ordering cost was that the ordering of products
was done twice a month, through online. She orders the products based on the
customers preferences on which products they like the most. To lessen the ordering
cost, she uses discount coupons.

4 The response of the online merchandising business owner no. 4 to her inventory
management practices in relation to ordering cost was that the ordering of products
was done once or twice a week through the local shops here in Marinduque. She
orders based on the prices of products. Ordering on the shops here helps her save
ordering costs.

5 The response of the online merchandising business owner no. 5 to her inventory
management practices in relation to ordering cost was that the ordering of jewelry
products was done weekly while the food products was done occasionally. She uses
social media platforms like Facebook to order. She orders products based on price,
buyers’ preferences and current trends.

6 The response of the online merchandising business owner no. 6 to her inventory
management practices in relation to ordering cost was that the ordering products was
done once a week through online. She orders the products based on the availability
of stocks in her inventory. To lessen the ordering costs, she buys in bulk or bundle.

7 The response of the online merchandising business owner no. 7 to her inventory
management practices in relation to ordering cost was that the ordering products was
done once a week through online. She orders the products based on the availability
of stocks in her inventory. To lessen the ordering costs, she buys in bulk or bundle.

8 The response of the online merchandising business owner no. 8 to her inventory
management practices in relation to ordering cost was that the ordering products was
done once a week through the online applications like Shopee. She orders the
products based on the price, rate of shipping fee, and customers’ preferences. She
also uses discount promos like free shipping vouchers to lower the ordering costs.
Table 2.1 Inventory Management Practices in Terms of Carrying Cost

RESPONDENTS INVENTORY MANAGEMENT PRACTICES IN TERMS OF CARRYING COST

1 The response of the online merchandising business owner no. 1 to her inventory
management practices in relation to carrying cost was that products were arranged
based on the similarities of products to avoid losing the items. It was check weekly
to ensure that no items are damaged. The usually stock their inventories on their
physical store to save carrying costs.

2 The response of the online merchandising business owner no. 2 to her inventory
management practices in relation to carrying cost was that products are categorized
based on its similarity. She also checks her inventories once or twice a week to know
whether the items are in good state. She stocks her products at home so she could
save expenses for renting a warehouse space.

3 The response of the online merchandising business owner no. 3 to her inventory
management practices in relation to carrying cost was that products are carefully
stored in the boxes to ensure its safety. She also monitors the state of her products
once or twice a week. To lessen the cost of storing, she also uses recycled boxes to
store her products instead of buying cabinets or new boxes.

4 The response of the online merchandising business owner no. 4 to her inventory
management practices in relation to carrying cost was that products are stored and
organized in a cabinet where each item is categorized based on its uses. To ensure
that items are in good condition, she checks and count them once a week and in
order to lower the cost of storing, she keeps her products at home.

5 The response of the online merchandising business owner no. 5 to her inventory
management practices in relation to carrying cost was that products are arrange
properly and she list the item that goes in and out of her inventory. She also checks
her stocks whenever someone buys the products.

6 The response of the online merchandising business owner no. 6 to her inventory
management practices in relation to carrying cost was she organized the products in
the cabinets. She also cleans the cabinets where the products are stored so the
products will not be damaged. To monitor the conditions of her inventories, she
checks it everyday. To lower the cost of holding inventories, she does the job og
checking and monitoring them instead of hiring personnel.

7 The response of the online merchandising business owner no. 7 to her inventory
management practices in relation to carrying cost was she put the inventories in the
boxes where she categorized them based on their similarity. She also checks the
inventories two to three times a week to see if there are damaged products. She
stocks her products at home to save money.

8 The response of the online merchandising business owner no. 8 to her inventory
management practices in relation to carrying cost was she put the inventories in the
boxes or envelopes to prevent them from ruination. She always looks at the
products’ condition everyday. She also stores all her products at home instead of
renting space to save money.
2. What are the challenges/problems met by the selected General Merchandising in
inventory management practices in terms of:
2.1 Ordering Cost
2.2 Carrying Cost

Table 3.1 Challenges/Problems Encountered by the Selected Online Merchandising

Businesses in Inventory Management Practices in Terms of Ordering Cost

RESPONDENTS INVENTORY MANAGEMENT PRACTICES IN TERMS OF CARRYING

COST
1 The respondent no. 1 said that the challenges/problems met in her
inventory management practices in relation to ordering cost is the increase
in price of shipping the products.

2 The respondent no. 2 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the sudden
stockouts of products that she will order.

3 The respondent no. 3 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the delay in
the delivery of ordered products.

4 The respondent no. 1 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the sudden
shortage in the stocks of the product she ordered.

5 The respondent no. 5 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the sudden
stockouts of products that she will order.

6 The respondent no. 6 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the increases
in shipping cost and delay in the delivery of products.

7 The respondent no. 7 said that the challenges/problems met in her

inventory management practices in relation to ordering cost is the sudden
stockouts of products that she will order and delay in the delivery of
products.

8 The respondent no. 8 said that the challenges/problems met in his inventory
management practices in relation to ordering cost is the delay in the delivery
of products.
Table 4.1 Challenges/Problems Encountered by the Selected Online Merchandising
Businesses in Inventory Management Practices in Terms of Carrying Cost

RESPONDENTS INVENTORY MANAGEMENT PRACTICES IN TERMS OF CARRYING

COST
1 The respondent no. 1 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the insects and pests
that harm the products when it is stock.

2 The respondent no. 2 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the destruction of
some products in the storage.

3 The respondent no. 3 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the mix up of different
products in the boxes.

4 The respondent no. 4 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the destruction of
some products especially the fragile items on hold.

5 The respondent no. 5 said that she doesn’t meet any challenges/problems
in her inventory management practices in relation to carrying cost.

6 The respondent no. 6 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the lack of workers
that could help her monitor the inventories on hold.

7 The respondent no. 7 said that the challenges/problem met in her inventory
management practices in relation to carrying cost was the defect on
products that occur during its storage.

8 The respondent no. 8 said that the challenges/problem met in his inventory
management practices in relation to carrying cost was the destruction of
some products on hold.
3.What recommendations should the respondents provide in terms of ordering and
carrying cost?

Table 5.0 Suggested Recommendation for Inventory Management Practices in

Terms of Ordering Cost and Carrying Cost of the Respondents

RESPONDENTS INVENTORY MANAGEMENT PRACTICES IN TERMS OF ORDERING

COST AND CARRYING COST
1 Ordering of the right number of products to avoid deadstock and use of
insecticides/pesticides to terminate insects and pests from destroying the
stocked products.

2 Well-planned way of storing products to avoid damage and ordering

products to store based on the demand of customers.

3 Careful arrangement of products through categorizing the items based on

their similarity to avoid disorder and constant monitoring of products
quantity and condition.

4 Sorting out of products based on their characteristics like separating the

fragile items to avoid damage, and frequently checking of products on stock
to keep count of it.

5 Listing of inventories on hold to keep count of items that goes in and out of
storage in order to keep tabs on the availability of the products on hand.

6 Creating a well-organized plan to optimized the management of inventories

like developing a schedule to visit and check the inventories.

7 Careful handling of stocks on hold and constantly monitoring of the

products’ condition and quantity.

8 Checking of inventories on hold frequently to assess whether the items are

in good state and to know what products are out of stocks.